Central Bank of Kenya Seeks to Land Sh10B from Two Bonds Tap Sale

The Central Bank of Kenya is seeking Sh10 billion from the reopening of the two May bonds which had underperformed in the first auction that closed last week.

The 10 and 25-year papers had raised Sh31.7 billion against the target of Sh60 billion.

The new target by the government's fiscal agent in the tap sale represents less than half of the shortfall in the initial sale.

The 10-year bond has an average interest rate of 13.49 percent while the rate on the 25-year security came in at 13.97 percent.

"Central Bank of Kenya is pleased to offer eligible investors an opportunity to participate in a tap sale of the above fixed coupon Treasury bonds whose details are as in the prospectus issued value date 16/05/2022. The tap sale will be offered on a first-come-first-served basis," the monetary authority said in a notice.

The sale will close upon attainment of the Sh10 billion target or on May 20, whichever comes first.